Skip to main content

Accounting for US current account deficits: an empirical investigation

Buy Article:

$53.17 plus tax (Refund Policy)


The sources of US current account deficits are investigated using a number of macroeconomic variables and a vector error correction model. The variables are those typically emphasized by the traditional income - expenditure approach and the intertemporal (Ricardian) approach. The results indicate that macroeconomic variables explain the current account reasonably well, and the evidence seems to support the traditional approach where budget deficits and increases in real interest rates and terms of trade are associated with current account deficits.

Document Type: Research Article


Publication date: June 1, 1997

More about this publication?

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Partial Open Access Content
Partial Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more